The Southeast Asia’s Green Economy 2022 report from Massachusetts-based global management consultancy Bain & Co. and Temasek, with contributions from Microsoft, assessed the Philippines as behind its Southeast Asian peers in terms of green transition and climate ambition.
The report showed the 10-member region has charted positive progress, as countries with zero net targets increased by six to eight nations with Singapore and Indonesia piloting carbon taxes but the Philippines lagging behind in terms of climate ambition as it falls behind its peer countries due to few concrete plans or policies.
As the country has yet to define its net zero target, the report recommended the development of clear decarbonization targets and establish a decarbonization roadmap.
The Philippines also had the slowest progress among Southeast Asian nations for carbon tax, with ongoing discussions over the last few years resulting in neither concrete decisions nor implementation plan laid down.
While the country’s implementation of coal power moratorium is encouraging, the report cited the importance to enact a moratorium on the current pipeline and phase out all coal by 2040. Government’s policy support for electric vehicle manufacturers and infra providers was also lauded, but it noted that the country lacks incentives to spur local consumer demand.
To further concretize plans, Bain & Co. recommended government actions, such as increasing renewable sourcing requirements from a measly one percent of total energy today. The adoption of higher annual increment on RE percentage will help the country “meet the aspirational target of at least 35 percent in the total power generation mix by 2030 and more than 50 percent by 2040,” it added.
“Despite bolder new ambitions, most SEA countries need more concrete roadmaps, as well as incentives and climate financing plans,” the report said.
As among the less ambitious nations with an unclear roadmap, the Philippines has its work cut out. Hopefully the incoming administration can do a better job than the previous one that did not prioritize the country’s green transition and climate ambitions.*
